Wall Street Journal: Slimmer SunCal Steps Up Deals, August 3, 2011


One of the nation's largest land developers, SunCal Cos., still is wrestling with the consequences of dozens of failed investments made before the real-estate bubble burst. Yet the company is making deals again.

In its latest move, closely held SunCal, based in Irvine, Calif., purchased Harbor Station, a 1,920-acre residential project near Washington, D.C., for about $55 million, according to people familiar with the matter. SunCal plans to finish development work on the project, which is zoned for 4,000 homes and includes a Jack Nicklaus signature golf course, and sell lots to home builders as early as next year.

Land developers such as SunCal played a key role in the housing market's boom and bust, feeding shovel-ready land to home builders. Through land speculation, developers helped drive up home prices across the country.